Bratislava, May 29, 2020 - Following up on the success of its financial instrument called SIH Anti-Corona Guarantee 1, which currently involves eight commercial banks, the Slovak Investment Holding (SIH) is launching another financial assistance scheme for Slovak enterprises that shall be governed in compliance with recently approved Temporary Framework of State Assistance designed to overcome the current period of health and safety measures aimed at preventing the spread of coronavirus. The new programme consists of guarantees issued to Slovak banks in order to allow them to extend favourable-terms bridge loans to Slovak entrepreneurs. The principal goal of the instrument is to help Slovak businesses to cope with financial difficulties caused by the on-going situation and to preserve available jobs despite the current crisis.
As we speak, the SIH is designing a guarantee financial instrument that should become available by mid-June 2020. The programme will be financed from two sources: first, it will be European structural and investment funds (ESIF) with indicative allocation of funds in the total amount of €347 million that is reserved to cover the extended loans; second, it will be state financial assets with allocation based on banks’ needs. Eligible to take part in the financial instrument shall be all financial institutions that hold a valid banking licence and are authorised to provide loans in the Slovak Republic. By the means of the guarantee instrument the SIH shall, through funds NDF I and NDF II, shoulder 90% of the participating banks’ credit risk pertaining to all new loans extended to Slovak businesses.
The announced financial instrument should facilitate the provision of new bridge loans with maturity of two to six years (with one-year deferment period on principal and interest) up to the amount of €2 million per loan. The beneficiary businesses will be able to use the loaned funds to finance their investment and operating costs in order to preserve employment.
Based on the previous positive experience with SIH Anti-Corona Guarantee 1, the SIH expects eligible banks to take interest in the new scheme as well and use the prepared financial instrument to create the most favourable conditions possible for financing their clients. The banks shall be able to indicate their interest to the SIH in compliance with instructions that will be announced in the first half of June 2020.
As of today, i.e. May 29, 2020, the SIH is opening a comment procedure on the proposed financial instrument, which shall conclude at midnight of June 7, 2020. The purpose of the procedure is to receive the feedback from relevant market players regarding the prepared financial instrument as well as the related contracts and thus guarantee its effective setting and performance. After taking the feedback into consideration, the SIH intends to release the call on all eligible subjects by mid-June 2020 to apply for implementing this financial instrument. Should you be interested in taking part in the comment procedure, please contact email@example.com
HERE you can find all the information and documents on SIH Anti-Corona Guarantee 2